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Presentation Slides to Accompany Organizational Behavior 10 th Edition Don Hellriegel and John W. Slocum, Jr. PowerPoint PPT Presentation


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Presentation Slides to Accompany Organizational Behavior 10 th Edition Don Hellriegel and John W. Slocum, Jr. Prepared by Michael K. McCuddy Valparaiso University. Chapter 13 — Making Decisions in Organizations. Learning Objectives for Making Decisions in Organizations.

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Presentation Slides to Accompany Organizational Behavior 10 th Edition Don Hellriegel and John W. Slocum, Jr.

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Presentation slides to accompany organizational behavior 10 th edition don hellriegel and john w slocum jr

Presentation Slidesto AccompanyOrganizational Behavior10th EditionDon Hellriegel and John W. Slocum, Jr.

Prepared by

Michael K. McCuddy

Valparaiso University

Chapter 13—Making Decisions in Organizations


Learning objectives for making decisions in organizations

Learning Objectives forMaking Decisions in Organizations

  • Explain the basic concepts for making ethical decisions

  • Describe the attributes of three models of managerial decision making

  • Explain two methods for stimulating organizational creativity

Chapter 13: Making Decisions in Organzations


Components of the foundation for making ethical decisions

Components of the Foundation for Making Ethical Decisions

  • Ethical intensity

  • Decision-making principles and decision rules

  • Affected individuals

  • Benefits and costs

  • Determination of rights

Chapter 13: Making Decisions in Organzations


Components of ethical intensity

Components of Ethical Intensity

  • Magnitude of consequences

  • Probability of effect

  • Social consensus

  • Temporal immediacy

  • Proximity

  • Concentration of effect

Chapter 13: Making Decisions in Organzations


Ethical principles that justify self serving behaviors and decisions

Ethical Principles That JustifySelf-Serving Behaviors and Decisions

  • Hedonist principle

    • Do whatever you find to be in your own self-interest but do nothing that is clearly illegal

  • Might-equals-right principle

    • Do whatever you are powerful enough to impose without respect to socially acceptable behaviors but do nothing that is clearly illegal

Chapter 13: Making Decisions in Organzations


Ethical principles that justify self serving behaviors and decisions1

Ethical Principles That JustifySelf-Serving Behaviors and Decisions

  • Organization interests principle

    • Act on the basis of what is good for the organization but do nothing that is clearly illegal

Chapter 13: Making Decisions in Organzations


Ethical principles that focus on balancing multiple interests

Ethical Principles That Focus on Balancing Multiple Interests

  • Means–end principle

    • Act on the basis of whether some overall good justifies any moral transgression but do nothing that is clearly illegal

  • Utilitarian principle

    • Act on the basis of whether the harm from a decision is outweighed by the good in it but do nothing that is clearly illegal

Chapter 13: Making Decisions in Organzations


Ethical principles that focus on balancing multiple interests1

Ethical Principles That Focus on Balancing Multiple Interests

  • Professional standards principle

    • Act on the basis of whether the decision can be explained before a group of your peers but do nothing that is clearly illegal

Chapter 13: Making Decisions in Organzations


Ethical principles that consider affected parties and the public

Ethical Principles That ConsiderAffected Parties and the Public

  • Disclosure principle

    • Act on the basis of how the general public would likely respond to disclosure of the rationale and facts related to the decision but do nothing that is clearly illegal

  • Distributive justice principle

    • Act on the basis of treating an individual or group equitably rather than on arbitrarily defined characteristics but do nothing that is clearly illegal

Chapter 13: Making Decisions in Organzations


Ethical principles that consider affected parties and the public1

Ethical Principles That ConsiderAffected Parties and the Public

  • Golden rule principle

    • Act on the basis of placing yourself in the position of someone affected by the decision and try to determine how that person would feel but do nothing that is clearly illegal

Chapter 13: Making Decisions in Organzations


Guidelines for integrating ethical decision making into the organization s daily life

Guidelines for Integrating Ethical Decision Making into the Organization’s Daily Life

  • Top management should commit to and model ethical behavior

  • Develop a code of ethics and follow it

  • Have procedures for organization members to report unethical behavior

  • Involve managers and employees in identifying and solving ethical problems

  • Include ethics in performance appraisal

  • Publicize the organization’s ethical orientation

Chapter 13: Making Decisions in Organzations


Explicit assumptions of the rational model

Explicit Assumptions ofthe Rational Model

  • All available information on alternatives has been obtained

  • Alternatives can be ranked according to explicit criteria

  • The alternative selected will provide the maximum gain

Chapter 13: Making Decisions in Organzations


Implicit assumptions of the rational model

Implicit Assumptions ofthe Rational Model

  • Ethical dilemmas do not exist in the decision-making process

  • The means–end principle and the utilitarian principles will dominate the consideration of ethical issues

Chapter 13: Making Decisions in Organzations


Portion of xerox s rational decision process

Portion of Xerox’s Rational Decision Process

QUESTION TO

BE ANSWERED

WHAT’S NEEDED TO

GO TO NEXT STEP

STEP

1. Identify and select problem

What do we want to change?

Identification of the gap;

describe “desired state”

2. Analyze problem

What’s preventing us from

reaching the “desired state”?

Key cause(s) documented

and ranked

3. Generate potential solutions

How could change be made?

Solution list

4. Select and plan the solution

What’s the best way to do it?

Make change plan; establish

measurement criteria

5. Implement the solution

Are we following the plan?

Solution in place

6. Evaluate the solution

How well did it work?

Solution verification; deal

with continuing problems

Source: Adapted from Garvin, D. A. Building a learning organization. Harvard Business Review, July-August 1993, 78-91; Brown, J. S., and Walton, E. Reenacting the corporation: Organizational change and restructuring of Xerox Planning Review, September/October 1993, 5-8.

Chapter 13: Making Decisions in Organzations


Bounded rationality model

Bounded Rationality Model

Bounded Rationality

Inadequate

Information

and Control

Limited

Search

Satisficing

Decisions

Chapter 13: Making Decisions in Organzations


Slide 13 12 political model of decision making

Slide 13.12Political Model of Decision Making

  • Describes decision making by individuals to satisfy their own interests

  • All aspects of the decision-making process are merely methods to tilt decision outcomes in the decision maker’s favor

  • Decision outcomes are affected by the distribution of power and the effectiveness of the tactics used by participants

  • Doesn’t explicitly consider ethical dilemmas but often draws on the hedonistic principle and the might-equals-right principle

Chapter 13: Making Decisions in Organzations


Slide 13 13 influence strategies

Slide 13.13Influence Strategies

  • Rational persuasion

  • Inspirational appeal

  • Consultation

  • Ingratiation

  • Exchange

  • Personal appeal

  • Coalition

  • Legitimating

  • Pressure

Source: Adapted from Yukl, G., Guinan, P. J., and Sottolano, D. Influence tactics used for different

objectives with subordinates, peers, and superiors. Group & Organization Management, 1995, 20, 275;

Buchanan, D., and Badham, R. Power, Politics and Organizational Change. London: Sage, 1999, 64.

Chapter 13: Making Decisions in Organzations


Slide 13 14 barriers to creativity and innovation

Slide 13.14Barriers to Creativity and Innovation

  • Perceptual blocks

    • Failure to use all the senses in observing

    • Failure to investigate the obvious

    • Difficulty in seeing remote relationships

    • Failure to distinguish between cause and effect

  • Cultural blocks

    • Desire to conform to established norms

    • Overemphasis on competition or conflict avoidance

    • Drive to be practical and to economize

    • Disbelief in the value of open-ended exploration

Chapter 13: Making Decisions in Organzations


Slide 13 14 continued barriers to creativity and innovation

Slide 13.14 (continued)Barriers to Creativity and Innovation

  • Emotional blocks

    • Fear of making a mistake

    • Fear and distrust of others

    • Latching on to the first idea

Chapter 13: Making Decisions in Organzations


Slide 13 15 characteristics of lateral versus vertical thinking

Slide 13.15Characteristics of Lateral Versus Vertical Thinking

  • Finds new ways to view things; concerned with change and movement.

  • Looks for what is different rather than “right” or “wrong.”

  • Analyzes ideas to generate new ideas.

  • Uses free association thinking.

  • Welcomes chance intrusions of information; considers the irrelevant.

  • Progresses by avoiding the obvious.

  • Tries to find absolutes; concerned with stability.

  • Seeks justification for each step; tries to find what is “right.”

  • Analyzes ideas for faults.

  • Seeks continuity.

  • Selectively chooses information to consider; rejects irrelevant information.

  • Progresses using established patterns; considers the obvious.

LATERAL THINKING

VERTICAL THINKING

Source: Based on de Bono, E. Lateral Thinking: Creativity Step by Step. New York:

Harper & Row, 1970; de Bono, E. Six Thinking Hats. Boston: Little, Brown, 1985.

Chapter 13: Making Decisions in Organzations


Slide 13 16 useful lateral thinking techniques

Slide 13.16Useful Lateral Thinking Techniques

  • Reversal technique

    • Examining a problem and turning it completely around, inside out, or upside down

  • Analogy technique

    • Developing a statement about similarities between objects, persons, and situations

  • Cross-fertilization technique

    • Asking experts from other fields to examine the problem and suggest solutions from their own areas of expertise

Chapter 13: Making Decisions in Organzations


Slide 13 17 decision making with a devil s advocate

Slide 13.17Decision Making with a Devil’s Advocate

A devil’s advocate

is assigned to

criticize the

proposal.

A critique is

presented to key

decision makers.

A proposed course

of action

is generated.

Repeat process, if needed.

The decision to

adopt, modify, or

discontinue the

proposed course of

action is taken.

Any additional

information

relevant to

the issues is

generated.

The decision

is monitored.

Source: Adapted from Cosier, R. A., and Schrivenk, C. R. Agreement and thinking alike:

Ingredients for poor decisions. Academy of Management, February 1991, 71.

Chapter 13: Making Decisions in Organzations


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